House Approves Measure to Erase Some Dodd-Frank Banking Rules

Alan Rappeport reported yesterday at The New York Times Online that, “The House approved legislation on Thursday to erase a number of core financial regulations put in place by the 2010 Dodd-Frank Act, as Republicans moved a step closer to delivering on their promises to eliminate rules that they claim have strangled small businesses and stagnated the economy.

“The vote is a significant step for a measure that still faces long odds of becoming law because of the slim majority that Republicans hold in the Senate.

“Even Wall Street lobbyists and lawyers were pessimistic about the chances of the bill, the Financial Choice Act.”

The Times article explained that, “Yet the bill’s passage in the House, by 233 to 186, keeps alive the Republican Party’s dream of unwinding one of President Barack Obama’s signature accomplishments. The vote quickly drew the ire of Democrats who argued that Republicans were giving a handout to Wall Street while putting everyday investors at risk.

“The bill has maintained a low profile compared with Republican plans on health care and taxes, but rolling back Dodd-Frank represents a major part of the Republican agenda. The Trump administration hopes that by unshackling businesses from burdensome regulations, renegotiating trade deals and cutting tax rates, it can help the economy grow faster and well-paying jobs will become more plentiful.”

Mr. Rappeport added that, “The House vote comes before a Treasury Department report due in the coming days that will detail the Trump administration’s plans for easing financial regulations. And a lighter regulatory touch is already expected as a result of the administration’s appointments of banking industry veterans to serve as financial regulators.

“The bill passed the House with only Republican support. But it is possible that bipartisan backing could emerge for parts of the legislation or for fixes to Dodd-Frank that could eventually become law.”